Skyrockets 3,028% annual revenue before the Nakamoto update
Stack, a Bitcoin Layer 2 solution, had a significant growth last year with a 3,386% quarterly increase and a 3,028% annual increase in revenue, reaching $637,000.
The market capitalization of Stake's native cryptocurrency STX increased by 203% quarter-over-quarter and an impressive 598% year-over-year, reaching a level of nearly $2 billion.
Stack Q4 report shows 363% TVL increase
Messari's “State of Stack Q4 2023” report indicates a 363% quarterly increase in total value locked (TVL), which translates to a 773% year-over-year increase to $61 million. In addition, the report indicated that their average daily income increased by 1,015 percent, reaching $78,000.
The report highlights Stax's prominent position in the Bitcoin Layer-2 ecosystem and Nakamoto's hopes for further growth in April 2024.
As detailed in the project's white paper, this update promises significant improvements, including accelerated block times, verified Bitcoin transaction endpoints, removal of forking risks, and a reduction in the Maximum Expenditure Value (MEV) associated with Bitcoin.
Nakamoto's update is bringing the launch of sBTC, a trust-reduced form of Bitcoin that can be modified and run within the Stacks ecosystem. It integrates the decentralized finance (DeFi) experience on Stacks with functionality offered by other leading DeFi platforms, increasing its appeal and utility.
Meanwhile, the financial direction of the stack has been moved by the STX20 Inscriptor protocol, a measure of both Bitcoin's growth and the broader cryptocurrency market.
Driven by Bitcoin posts, particularly BRC-20 rounds, the STX20 protocol has experienced record-breaking levels of network activity, with more than 10,000 transactions recorded in a single block in December – marking the largest block in Stacks history.
Stack growth in DeFi platforms and transaction volume
The report shed light on platforms such as ALEX, Arkadiko and StackingDAO, which have brought further growth to the stacking ecosystem. These platforms contribute to Stacks' DeFi ecosystem with a 52% quarterly increase in daily transactions and a 65% increase in active addresses, indicating strong growth in user engagement and interest.
The increased activity has led to an increased urgency among users to prioritize their transactions, resulting in a 400% quarter-on-quarter increase in average transaction fees (as measured by STX).
Measured in USD, average transaction fees increased 894% quarter over quarter. Despite these significant increases, the average transaction fee has remained relatively low at $0.25 in USD.
In the year Projects built on the Bitcoin network in 2024 are being described by various industry insiders as a popular theme in the crypto sector.
Nansen, who works at the chain, described the trend as one of his four ‘biggest penalty bets' of the year. Similarly, Brazilian asset management firm Hashdex highlighted the emergence of the Bitcoin industry as a key development to watch.
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